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Mitsubishi Motors vehicles in the UK are not affected

Following today’s Mitsubishi Motors Corporation news conference in Tokyo, the following letter has been sent to our customers to explain that UK vehicles are not affected.

You may recall that I wrote to you a couple of weeks ago to tell you about an issue with fuel consumption tests on Mitsubishi vehicles in Japan. I told you then that there was no evidence to suggest that Mitsubishi vehicles produced for Europe were affected. I'm now pleased to be able to confirm for certain, following a detailed independent investigation, that no vehicles produced for UK and Europe are affected.

There has been a certain amount of coverage of this issue which has not been entirely accurate. The facts are that the company discovered that it had been submitting data from driving tests used in the USA to measure fuel economy rather than driving tests required in Japan.

The company viewed the situation very seriously. It acted quickly by putting in place a committee of external experts to investigate the issue and pledged to make these results public as soon as possible. Today the company has confirmed that no models sold in the UK, or anywhere else in Europe, are affected.

It is important to point out that this is not the same as the 'emissions' issue that has been revealed at Volkswagen. The testing data that has been wrongly presented relates to fuel consumption performance, not emissions into the environment.

Yours sincerely,

Lance Bradley
Managing Director
Mitsubishi Motors in the UK

Establishment of Special Investigation Committee

Tokyo, April 26, 2016

In connection with the certification process for the mini-cars manufactured by Mitsubishi Motors Corporation ("MMC"), MMC hereby notifies that, yesterday, the board of directors decided to establish a special investigation committee (the "Committee") consisting of only external experts.

MMC expresses its most sincere apologies to all of our customers, shareholders, and stakeholders for any inconvenience or concern caused by this occasion.

1. Background for the establishment of the Committee

As announced, on April 20, 2016, in the press release titled "Improper conduct in fuel consumption testing on products manufactured by Mitsubishi Motors Corporation (MMC)," it has been revealed that, in the certification process for mini-cars manufactured by MMC, with respect to the fuel consumption testing data submitted to the Ministry of Land, Infrastructure, Transport, and Tourism, MMC conducted testing improperly, to present better fuel consumption rates than the actual rates; and that the testing method was also different from the one required by Japanese law (the "Matter"). For the sake of ensuring an objective and thorough investigation into the Matter, MMC has established this Committee in a way such that all members would be external experts independent from MMC.

2. Membership and activities of the Committee

i. Membership of the Committee

The Committee is composed of the members, as follows, who have no conflicts of interest with MMC. Therefore, MMC has recognized no factor that would harm the independence and neutrality of the Committee. Further, MMC is considering appointing experts with technical knowledge to participate in the investigation.

In connection with the certification process for the mini-cars manufactured by MMC, we found that with respect to the fuel consumption testing data submitted to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), MMC conducted testing improperly to present better fuel consumption rates than the actual rates; and that the testing method was also different from the one required by Japanese law. We express deep apologies to all of our customers and stakeholders for this issue.

The applicable cars are four mini-car models, two of which are the "eK Wagon" and "eK Space" which have been manufactured by MMC; and the other two are the "Dayz" and "Dayz Roox" which have been manufactured by MMC and supplied to Nissan Motors Corporation (NM) since June 2013. Up until the end of March 2016, MMC has sold 157 thousand units of the eK Wagon and eK Space and supplied 468 thousand units of the Dayz and Dayz Roox to NM.

Since MMC developed the applicable cars and was responsible for obtaining the relevant certifications, MMC conducted fuel consumption testing. In the process of the development for the next generation of mini-car products, NM examined the fuel consumption rates of the applicable cars for NM's reference and found deviations in the figures. NM requested MMC to review the running resistance(*) value set by MMC during tests by MMC. In the course of our internal investigation upon this request, MMC learned of the improper conduct that MMC used the running resistance value for testing which provided more advantageous fuel consumption rates than the actual rates. MMC will sincerely respond to our customers who own and use the applicable cars.

(*) running resistance: rolling resistance (mainly generated by tires) and air resistance while vehicles are moving.

We have decided to stop production and sales of the applicable cars. NM also has stopped sales of the applicable cars, and MMC and NM will discuss compensation regarding this issue.

During our internal investigation, we have found that the testing method which was different from the one required by Japanese law has been applied to other models manufactured by MMC for the Japanese domestic market.

Taking into account the seriousness of these issues, we will also conduct an investigation into products manufactured for overseas markets.

In order to conduct an investigation into these issues objectively and thoroughly, we plan to set up a committee consisting of only external experts. We will publish the results of our investigation as soon as it is complete.

All new retail vehicles are shown with OTR (On The Road) Prices. OTR prices include VAT at 20%, Government Road Fund Licence, First Registration Fee (£55) and the cost of delivery to the dealer’s premises. Commercial vehicles are shown with Commercial Vehicle List Prices (CV List Prices). CV List Price includes the cost of delivery to the dealer’s premises, but exclude VAT, Government Road Fund Licence and First Registration Fee (£55). Government Road Fund Licence for commercial vehicles is £240. All prices shown are for solid paint. Metallic paint extra. Official EU MPG and EV Range test figures shown as a guide for comparative purposes and may not reflect real driving results. Outlander PHEV figures are based on the vehicle being charged from mains electricity. Images shown are for illustrative purposes only and UK specification may vary, please check details with your local dealer.

Financial Disclosure Statement

Each Mitsubishi dealer is either directly authorised and regulated by the Financial Conduct Authority or is an appointed representative of a principal firm which is directly authorised and regulated by the Financial Conduct Authority, permitted to act as Credit Brokers for introduction to finance providers, acting on behalf of the lender OR to arrange non-investment insurance contracts, acting on behalf of the insurer OR both. Full information will be provided on request or can be checked on the Financial Services Register by visiting the FCA's website www.fsa.gov.uk/register/home.do or by contacting the FCA on 0800 111 6768.